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Towards Sustainability The UK Automotive Sector Fifth Annual Report PAGE 2 1. Chief Executive’s Statement Content Page Content Page

Welcome to the Fifth Annual Sustainability report. 1. Chief Executive’s Statement 2 6. Economic Performance I trust that you will find the new format clear and 6.1 UK Economy 15 easy to follow. Location Map and Signatories 3 6.2 Production Indicators 15 I am very pleased to be able to welcome PSA 6.3 Investment 16 Citroën, and as new Data and Report Coverage 4 signatories and to include their data for 2003 in 6.4 Employment 16 this report. We now include data representing 98 2. Executive Summary and Key Indicators 5 6.5 Supply Chain 17 per cent of assembly in the , 6.5.1 Modal Choice 17 as well as data from major component and light suppliers. We believe this is an outstanding 3. Sector Profile 6 achievement for the sector. 7. Social Performance 7.1 Production and Distribution The report demonstrates the increasingly prudent 4. PRODUCT – Environmental Performance Processes 18 use of resources and the industry remains an 4.1 Absolute CO2 7 excellent prospect as a place to work and enjoy 4.2 Fuel Economy 7 7.1.1 Employee Profiles 18 employment. 7.1.2 Employee Development 18 4.3 CO2 Trends 7 A report by the World Business Council for 4.4 Tailpipe Emissions 8 7.1.3 Health and Safety 19 Sustainable Development called, Mobility 2030; 4.5 Vehicle Recycling 8 7.1.4 Training 20 Meeting the challenges to sustainability, highlights 7.1.5 Staff Turnover 21 global issues the industry faces; we refer to these and other issues raised, all of which are 5. PRODUCTION AND DISTRIBUTION – 7.1.6 Employee Consultation 21 examined by teams here at SMMT. Environmental Performance 7.1.7 Stakeholder Engagement 22 The UK is the fourth largest producer and second 5.1 Environmental Management Summary 9 7.1.8 Community 22 largest market for in the EU. We need to maintain a strong understanding of the issues of 5.2 Environmental Management – INPUTS 10 8. Sector Issues – Sustainability sustainability in our industry and retain a position of influence. I am confident that this report helps 5.2.1 Combined Energy Use 11 8.1 Sustainable Mobility 23 that process. 5.2.2 Combined Water Use 11 8.2 Emissions 8.2.1 CO Global Warming 23 We remain committed to the issues raised and 2 gaining the greatest understanding of them. 5.3 Environmental Management – OUTPUTS 12 8.2.2 Air Quality 24

5.3.1 Combined CO2 13 8.3.Responsible Product Use 24 5.3.2 Combined VOCs 13 8.4 New Vehicle Technology 25 5.3.3 Combined Waste to Landfill 14 8.5 Noise 25 5.3.4 Combined Recycling and Recovery 14 8.6 Congestion 26 Christopher Macgowan, Chief Executive, SMMT 8.7 Safety 26

9. Further Contacts 27 PAGE 3 Sustainability Report Signatories Signatories, Major location of The signatories to this process are: sites included in data reports • Audi Vehicle Production • Motors Engine Major Component Production • BMW Group Central Logistics • Limited • GKN Driveline Limited Research and testing • UK Manufacturing Limited

Table 1.0 Worldwide Car Assembly ('000s units) • Limited • Land UK Limited World Europe Year 2003 1 Japan 8,480 • LDV Limited 21Germany 4,811 • MG Limited 3USA 4,504 4 2 France 3,198 • Motor Manufacturing (UK) Limited 5 Korea 2,730 Nissan Technology Centre Europe 6 3 Spain 2,583 7 China 2,120 • 8 4 UK 1,657 • PSA Peugeot Citroën Automobiles UK 9 Canada 1,262 Limited 10 5 Italy 1,026 • Powertrain Limited Source:SMMT • Rolls-Royce Motor Cars Limited • SEAT • Skoda Auto • Toyota GB plc and Toyota Motor Manufacturing UK Limited • Limited The United Kingdom is the • Volvo Car UK Limited eighth largest producer of • UK Limited passenger cars in the • Volkswagen Commercial Vehicles world. It is the fourth largest market for passenger cars Source: SMMT Motor Industry of Great Britain: World Automotive Statistics Major sites only for indicative purposes PAGE 4 The Society of Motor Manufacturers and Traders Limited Report Coverage The Society of Motor Manufacturers and Traders (SMMT) exists to provide services and support The data for this report refers to the 2003 calendar year. for the UK industry. Since 1902 it has served the ever-changing needs of its members and the The data contained in the report indicates trends amongst environment in which they operate. signatories. It is not necessarily a true reflection of data on a With over 600 members, SMMT supports a large range of companies representing the whole value year by year basis. Where we are aware of data issues supply chain including vehicle manufacturers, component suppliers, research, design, which have skewed the data, we highlight this in the text. companies and many others. Report Format Functions include representation to government at home and abroad on key issues, national and Data in the report is quoted in a number of ways: international events, and exhibitions. The Society is also at the forefront in tackling issues like • Whole industry data (WI) competitiveness, the skills shortage and R & D through projects like Industry Forum, training, as • All car sales in the United Kingdom (AC) well as managing the Automotive Academy and the Foresight Vehicles Programme. • SMMT members data (SMMT) The sustainability strategy was launched in 2000, using 1999 data and today its signatories include • Signatories to the Sustainability Report, sub divided into: all the major car producers in the UK. • All signatories (AS) • Vehicle manufacturing signatories (VMS) During the report period the number of signatories has increased, and so the report continues to develop. The historical data in the report, therefore, should not be considered solely in the light of We indicate where data is specific to VMS. This is the present signatories. consistent with previous reporting methods. Therefore, per This year we have opted to indicate the degree by which data has changed in absolute terms as a vehicle data only includes data from vehicle producing result of new input. signatories.

Changes in signatories’ from the fourth report Throughout the report we refer to the Strategy Commitment and we comment in terms of the Strategy Achievement for A number of changes have taken place in the signatories’ report this year: 2003. 2003 data includes: Powertrain and PSA Peugeot Citroën Automobiles UK Limited. 2003 data excludes: Dunlop, ERF Limited, Volex Wiring Systems and Group of This report follows the format of the Global Reporting Companies. Initiative (GRI) sustainability reporting guidelines. www.globalreporting.org As an indication of this, the net impact of these changes on the following key indicators are: change attributable to The format is developed for sector level reporting. signatory changes overall change 2003 to 2002 net Contact: Environment Team Turnover: up £2.06 bn up £3.42 bn up £1.36 bn The Society of Motor Manufacturers and Traders Limited Energy use: down 193.3 Gwh down 400.0 Gwh down 206.7 Gwh Forbes House Halkin Street Employment: up 932 down 1,830 down 2,762 London Waste to Landfill: up 6,295 tonnes down 14,154 tonnes down 20,449 t SW1X 7DS UK Data is excluded from four signatories for the following reasons; changes in business function Telephone: +44 (0)20 7344 9200 from automotive to logistics, modification of production patterns and internal changes in E-mail: [email protected] reporting regimes. Web: www.smmt.co.uk There were no major changes in site operations to common signatories 2003 versus 2002. PAGE 5 The data presented throughout the report 2. Executive Summary and Key Performance Indicators illustrates the development of key sustainability indicators over the last five years, since the 2002 2003 Change REPRESENTATION Table 2.1 Key Performance Indicators report began. Number of signatories (AS) 24 22 -2 REDUCED In the summary we indicate progress on the Economic Performance (Sector) (WI) previous calendar year. Automotive manufacturing sector turnover (£billions) £43.1bn £43.5 bn +£0.4bn INCREASED Total number of cars and CVs produced (UK) (WI) 1.82m 1.84m +0.2m INCREASED During 2003 the sector became cleaner and Total new car registrations (UK) (AC) 2.56m 2.58m +0.2m INCREASED consumed less resources. It continued to be a safe, flexible working environment, and in Economic Performance (Signatories) production and market terms grew in size. Signatories’ combined turnover (£billions) (AS) £35.73bn £39.16 bn +£3.43bn INCREASED Total number of vehicles produced by signatories (AS) 1,441,794 1,731,894 290,100 INCREASED Major developments in data for 2003 include an increase in the production and registration Product Environmental Performance of vehicles in the United Kingdom. Average new car CO2 emissions (g/km) (AC) 174.2 172.1 -2.1 IMPROVED Product – improvements in CO2 emissions Average new car fuel economy (miles per gallon) (AC) 37.1 37.7 0.6 IMPROVED from new vehicles and a continued move by Number of models meeting Euro IV (AC) 116 157 41 IMPROVED manufacturers towards early introduction of new emissions standards. Enhanced vehicle Company Operational Performance (signatories) safety standards. Total combined energy use (GWh) (AS) 6,540 a 6,126 -414 IMPROVED Energy used per vehicle produced (MWh/unit) (VMS) 4 2.8 -1.2 IMPROVED Operational – an absolute reduction in energy consumption, water use, CO and waste to 3 9,108 8,404 -704 IMPROVED 2 Total combined water use (‘000m ) (AS) landfill, an increase in VOCs in absolute terms. 3 5.6 3.4 -2.2 Water use per vehicle produced (m /unit) (VMS) IMPROVED An improvement in performance per vehicle Total combined CO2 equivalents (tonnes) (AS) 1,954,295 b 1,644,225 -310,070 IMPROVED across all indicators. CO 2 equivalents per vehicle produced (tonnes/unit) 1.2 0.7 -0.5 IMPROVED Social Performance – staff turnover remains Total combined emissions of VOC (t) (AS) 6,240 7,337 1,097 DETERIORATED low. We report on Health and Safety, where VOC emissions per vehicle produced (kg/unit) (VMS) 4.2 4.1 -0.1 IMPROVED the record of the sector is impressive and Total combined waste to landfill (tonnes) (AS) 70,896 56,743 -14,153 IMPROVED significant work is ongoing. Training levels Waste to landfill per vehicle produced (kg/unit) (VMS) 40.5 17.9 -22.6 IMPROVED remain consistently high. The industry is a significant generator of Social Performance (signatories) income and employment, although absolute Signatories’ average staff turnover (AS) 7.00% 6.10% -0.9 IMPROVED employment numbers have declined. Signatories’ combined number of employees (AS) 89,455 87,625 -1,830 REDUCED We have highlighted our a Revised from 6,681Gwh, or down 2.1% b Revised from 2,142,706 tonnes, or down 8.8% strategy commitments strategy achievements fuel economy data re-calculated from previous years, based on SMMT and DfT information to report further on progress. PAGE 6

3. Sector Profile Table 3.1 Sector Fact Sheet 1999 2000 2001 2002 2003

Automotive manufacturing sector turnover (WI) £44.2bn £42.5bn £42.2bn £43.1bn £43.5bn Share of total manufacturing turnover (UK turnover) 9.6% 9.1% 9.1% 9.3% 9.1% Total Net Capital Investment (WI) £2.13bn £2.08bn £2.23bn £2.17bn £2.16bn Automotive sector value added (WI) £7.7bn £7.8bn £8.97bn £9.42bn £10.45bn Total employees directly dependent on the automotive sector (WI) 867,000 849,000 835,800 847,100 841,000 Value of exports (WI) £19.1bn £19.8bn £18.0bn £20.9bn £21.5bn Percentage of total UK export 11.5% 10.5% 9.5% 11.2% 11.3% Sector value added share of UK GDP 3.9% 3.4% 3.9% 3.9% 3.8% UK sector share of global passenger car production 4.5% 4.0% 3.7% 4.0% 4.0% No. of UK volume passenger car manufacturers (WI) - 9 9 11 a 9 No. of UK commercial vehicle (CV) manufacturers (WI) - 10 10 9 9 Number of cars and CVs produced 2.02m 1.81m 1.68m 1.82m 1.84m New car registrations (AC) 2.19m 2.22m 2.45m 2.56m 2.58m Cars and light CVs on the road 29.5m 29.9m 30.5m 31.3m 31.9m

a The number of "volume" manufacturers incorrectly included Rolls- Royce and Bentley

The UK remains a significant producer of and market for, automotive and component production, design and associated services. The UK is uniquely placed in having 12 worldwide brands with a production interest in the UK, in vehicles or engines. This gives the industry strength and depth, and the opportunity for global development. As the fourth largest market in the world the ‘state of play’ in the UK impacts the sector globally. Although employment in the sector is declining overall, investment remains strong. The industry is highly export focused, many manufacturers exporting more than 50 per cent of production to markets worldwide; Europe and North America are major markets for UK-made products, other markets include Japan and Australia the success of exports is vital to ongoing development. The UK continues to manufacture a wide range of product derivatives, from supermini to luxury vehicles, and all model variants in between. Finally, the number of vehicles on the road in the UK continues to increase, up by 600,000 in the last year. There are important sustainability issues resulting from this growth, and SMMT recognises that automotive manufacturers and traders have a role to play in helping address this. We looking at ways of enhancing our involvement in this debate, we report more comprehensively on this in the sustainable mobility section. 4. PRODUCT - Environmental Performance (1) PAGE 7

4.1 Absolute Product CO2 (AC) 4.2 Fuel Economy (AC) 4.3 CO2 Product Trends (AC)

UK Average New2 Emissions Car CO UK Average New Car Fuel Economy UK New Cars - Carbon Dioxide Profile 189.9 188.4 37.1 37.7 185.0 35.6 36.4 35.0 181.0 34.5 25 177.7 40.0 20 1997 a llo n

174.2 g 38.0 190.0 15 2002 172.1 36.0 185.0 er 34.0 p 10 2003 180.0 32.0 30.0 175.0 28.0 5 rm CO2/km Grams 170.0 M26.0 ile s 24.0 0 165.0 22.0 % of the new car m arket 20.0 160.0 0 0 0 + 0 6 8 140 1 1 200 22 240 12 < 251

STRATEGY COMMITMENT: continue to improve1998 fuel efficiency 1999 2000 2001 2002 2003 1997 1998 1999 2000 2001 2002 2003 EU COMMITMENT: reduce CO2 emissions from new cars by 25 per cent between 1995 and 2008 across Europe

• In 2003 a new car sold in the United Kingdom • Diesel penetration in 2003 reached 704,537 • The proportion of new cars emitting less than

emitted an average of 172.1 g/CO2 per km units in 2003, a record 27.3 per cent of the 140g/km has risen to 14.9 per cent, from just • This level was down 1.2 per cent on 2002 market, up from 23.5 per cent in 2002 over 10 per cent in 2001 • 9.3 per cent down on the 1997 baseline • Diesel technology is now increasing, • The median sales for 2003 were 150 g/km, penetrating all market segments, from supermini compared to 180g/km in 1997 • Superminis is the largest sector, for to luxury a record 33.9 per cent market share in 2003 • Three per cent of new cars sold emit under • Petrol electric hybrid registrations were over 120g/km of CO • The luxury car sector saw the largest reduction 2 1,000 in 2003 and rising, though this represents • This represents 77,000 cars; there were none in CO2 for 2003 vs 2002, down 4.7 per cent less than 0.1 per cent of the new car market in 1997 and only 3,000 in 2000 • Sports cars was the only segment to post a net • Data derived from DfT and SMMT information, • New cars with low CO are increasingly rise in CO2 emissions 2 recalculated from previous years available

STRATEGY ACHIEVEMENT: decline in new car CO2 levels is sustained, but a strong increase in consumer demand

towards the purchase of increasingly available lower CO2 cars will be needed to meet 2008 European objectives PAGE 8 4. PRODUCT Environmental Performance (2) STRATEGY COMMITMENT: to continue to research, develop and bring cleaner technologies to the market to improve 4.4 Tailpipe Emissions - tailpipe emission standards

UK New Car Models Available Achieving Euro IV From 1 January 2005, all new types of passenger cars will be required to conform to the new emission standards (Euro IV). As the of the new Emissions Standard regulation nears, the number of models complying with the new standards 149 increases. From 1 January 2006, this will be extended to all new registrations. 160 Manufacturers continued to make new Euro IV models available prior to the 140 116 deadlines. 120 100 75 Discussions continue with the European Union on new standards that will be 80 51 required for Euro V for passenger cars. The outcome of these negotiations will 60 be finalised during 2005. 40 15 No. of models 20 0 2000 2001 2002 2003 (Jan to 2004 (Jan to STRATEGY ACHIEVEMENT: manufacturers continuously May) May) work to research, develop and introduce improvements in tailpipe emissions

4.5 Vehicle Recycling STRATEGY COMMITMENT: to continue to facilitate efforts to improve the level of material recovery from End of Life Vehicles (ELV)

Implementation of End of Life Vehicle (ELV) Regulation continues in the UK and the details of the administrative arrangements are now under further discussion. The world market for scrap steel was strong in 2003 largely due to demand driven from China. This has supported the price for this commodity. Research and development continues on building demand, and on processes to recycle other materials such as plastics from motor vehicles. Many manufacturers are already using recycled plastic in car parts and demand a recycled content in the plastic they buy. This helps to stimulate the marketplace for recyclables.

STRATEGY ACHIEVEMENT: continued compliance with regulation and development and research in other areas, future success sensitive to commodity prices 5. PRODUCTION AND DISTRIBUTION Processes Environmental Performance (1) PAGE 9

5.1 Environmental Management - Summary

STRATEGY COMMITMENT: to continue to control and reduce the environmental impact of company operations

Table 5.1 Environmental Management Indicators 1999 2000 2001 2002 2003

Number of signatories 11 18 18 24 22 Number of manufacturing sites covered by SMMT's sustainability strategy 40 44 45 43 38 Number of manufacturing sites with a certified Environmental Management System 26 (65%) 35 (79%) 37 (82%) 35 (81%) 33 (87%) Number of companies having minimum environmental standards applying to UK-based suppliers - 11 (65%) 12 (67%) 12 (52%) 13 (59%)

With the signatories to the sustainability agreement now including all major UK producers, we are well placed to assess the impact of sector operations. It is apparent that all signatories have made widespread improvements during the last five years. These achievements are driven partly by regulation, partly by voluntary agreement, by management systems and by good practice. It is encouraging to see all of the signatories progressing in environmental management, and driving these developments through the supply chain. The support work of SMMT, through groups such as the Manufacturing Environment Working Group and the Environment Team is important in enabling debate and policy positions to be developed on all important sustainability matters. These groups are widely supported by members, a significant commitment of time and effort. SMMT believes that support for Small and Medium Enterprises (SMEs) should be greater and this is an issue we intend to address. Developments in European environmental regulation are not always consistently applied. This is something that we have become aware of in the European Union Emissions Trading Scheme (EU ETS), where treatment of plants within the sector can be varied. We feel that consistency in this area is important, to prevent other aspects of sustainable development being hindered by unfair competitive advantage and erratic application of environmental regulation. Signatories continue to invest in environmental management systems and are looking to suppliers to embrace these environmental standards further. Though statistically the extension of such schemes does not appear to be increasing, the good practice associated with them and general management is bringing about environmental improvements. SMMT awaits the developments of the International Standards Organisation to include environment of criteria in quality reporting systems, how this is implemented and whether this will impact on stand alone systems such as ISO 14001 and EMAS. In this section of the report SMMTgives an honest indicator of the range of improvement in key indicators and highlights the relevant issues.

STRATEGY ACHIEVEMENT: the reduction in impact on the environment of company operations continues across nearly all key indicators, driven by a combination of factors PAGE 10

5. PRODUCTION AND DISTRIBUTION Processes Environmental Performance (2) 5.2 Environmental Management - Inputs INPUT 1999 2000 2001 2002 2003

Total combined energy use (GWh) (AS) 6,110 7,013 6,857 6,540 a 6,126

Energy use (kWh) per employee (AS) 64,175 70,108 71,166 74,685 69,912 Energy use (kWh) per £1million turnover (AS) 303,828 309,717 281,036 186,943 156,419 Energy use (MWh/unit) per vehicle produced (VMS) 3.1 3.9 4.3 4 2.8 Total combined water use ('000m3) (AS) - 9,620 10,105 9,108 8,404

Water use per employee (m3/employee) (AS) - 96.2 104.9 101.8 95.9 Water use (m3) per £1million turnover (AS) - 457 414 255 215 Water use (m 3 ) per vehicle produced (VMS) - 5.3 6.2 5.6 3.4

a revised from 6,681

In the report we measure two major inputs into the production process: • Energy Use • Water Use Both of these key indicators have significantly decreased in absolute and relative terms, and in key measures against employee, turnover and per vehicle. Data per vehicle is based on those signatories producing vehicles in the UK, as opposed to engines and components. During the last five years there have been a number of structural changes influencing this data, for example the end of car production at Luton and the transfer of Dagenham to engine production only. These changes may have impacted the data, but overall energy and water reductions are significant, and sustained. Most of the signatories have objectives for further reduction in energy and water use.

Design and resource use With the combined objective of increasing body stiffness and reducing the number of parts, the number of body pressings in new cars is reducing by up to 50 per cent compared to the previous model counterpart. This should impact favourably on the time and energy required in production of the vehicle. PAGE 11 5. PRODUCTION AND DISTRIBUTION: Processes Environmental Performance – Inputs Focus (3)

Signatories' Combined Energy Use 5.2.1 Combined Energy Use

Both absolute (down 6.3 per cent) and measures per vehicle (down 30 per cent) have seen significant reductions on 2002 8,000 5,000 data. 7,000 4,500 Looking at the performance of individual signatories, nearly 80 4,000 6,000 per cent have improved or seen no change. For the remainder, 3,500 one signatory has seen substantial establishment of new 5,000 3,000 production facilities, and one other smaller input has re-assessed 4,000 2,500 validation of its data resulting in increased returns for 2003 over 3,000 2,000 2002. GW/h (bars) 2,000 1,500 1,000 Energy use per vehicle has fallen as a result of a decrease in 1,000

Combined energyuse total energy used and increase in production. The addition of a 500 kWh (line) per vehicle 0 0 new vehicle assembler signatory explains the greater relative change in this indicator over and above the absolute indicator.

1999 2000 2001 2002 2003

Signatories' Combined Water Use 5.2.2 Combined Water Use

Again, both in absolute terms and per vehicle, there have been significant reductions on 2002 data. 12,000 7 Improvements in the amount of water used per vehicle are 10,000 6 particularly significant, falling from 5.6m3 per vehicle in 2002 to 3.4m3 in 2003, a 39 per cent reduction. 8,000 5 4 In absolute terms the reduction in water consumption was not so 6,000 great (7.7 per cent). Five signatories saw an increase in water 3 consumption in absolute terms in 2003. 4,000 '000m3 (bars) 2 This may indicate that the very largest water users have made 2,000 significant gains in water saving. Further improvements may be M3 per vehicle (line)

Combined water use 1 less substantial. 0 0

1999 2000 2001 2002 2003 PAGE 12

5. PRODUCTION AND DISTRIBUTION Processes Environmental Performance (4) 5.3 Environmental Management - Outputs A further improvement in all OUPUT 19992000200120022003 key indicators, with the exception of (in absolute Total Combined CO2 equivalent (tonnes) (AS) 1,821,586 2,182,926 2,149,771 1,954,295 a 1,644,225 and per employee terms) of

CO2 equivalent (tonnes) per employee (AS) 19.3 21.8 22.3 23.9 18.8 Volatile Organic Com-

CO2 equivalent (tonnes) per £1million turnover (AS) 90.6 95.3 88.1 59.9 42.0 pounds (VOC) solvents from painting. The inclusion of a CO 2 equivalent (tonnes) per vehicle produced (VMS) 1.1 1.1 1.3 1.2 0.7 new manufacturer in the Total Combined Emissions of VOC (kg) (AS) 4,018,951 7,136,682 6,926,340 6,240,100 7,336,780 data is key to this increase. The per vehicle indicator Emissions of VOC (kg) per employee (AS) 42.2 71.3 71.9 69.7 83.7 shows a decrease. Emissions of VOC (kg) per £1million turnover (AS) 199.8 339.0 284.0 174.6 187.4 Emissions of VOC (kg) per vehicle produced (VMS) 2.9 4.4 4.6 4.2 4.1 Dramatic improvements have taken place in the Total Combined Waste to landfill (tonnes) (AS) 54,954 80,399 121,207 70,897 56,743 reduction in waste to landfill Waste to landfill (tonnes) per employee (AS) 0.6 0.8 1.3 0.8 0.6 during 2003. Even allowing for the additional data from Waste to landfill (tonnes) per £1million turnover (AS) 2.7 3.7 4.9 2.0 1.4 Powertrain and PSA Waste to landfill (kg) per vehicle produced (VMS) - 40.3 66.4 40.5 17.9 Peugeot Citroën, there has been an absolute reduction Total Combined Packaging waste for recovery (tonnes) (AS) 10,900 20,272 16,768 17,053 15,038 of over 14,000 tonnes in Packaging waste (tonnes) for recovery per employee (AS) 0.11 0.2 0.17 0.3 0.2 waste to landfill. Packaging waste (tonnes) for recovery per £1million turnover (AS) 0.5 0.9 0.7 0.7 0.4 Although improvements in Packaging waste (kg) for recovery per vehicle produced (VMS) 5.6 10.5 8.4 8 6.5 recovery rates have slowed, data suggests this is as a Total Combined Packaging waste for recycling (tonnes) (AS) 1,802 5,058 6,344 5,801 12,587 result of waste minimisation. Packaging waste (kg) for recycling per employee (AS) 18.9 50.5 65.8 61.4 143.6 Packaging waste (kg) for recycling per £1million turnover (AS) 89.6 240 260 153 321.4 Recycling has increased Packaging waste (kg) for recycling per vehicle produced (VMS) 1.1 2.5 3.5 2.8 5.1 dramatically, additionally the data suggests that waste minimisation, an important a revised from 2,142,706 focus of strategy, is increasing. PAGE 13 5. PRODUCTION AND DISTRIBUTION Processes Environmental Performance – Outputs Focus (5)

5.3.1 Combined CO2 Equivalent Signatories' Combined CO2 Emissions - As expected with the associated reduction in energy

Production and Distribution consumption, we see a reduction in CO2 emissions (down 15.8 per cent). However, signatories are now undertaking three actions

beyond energy reduction alone to reduce CO2 output and its impact further. 2,500,000 1.4 • Investing in renewable energy; installation of a wind energy 2,000,000 1.2 generation plant at Dagenham in 2004 (this is not included in this 1 data) will reduce CO emissions. A second manufacturing 1,500,000 2 0.8 signatory has the target of using 10 cent renewable energy in 1,000,000 manufacturing operations by 2009. equivalent equivalent 0.6 2 2 0.4 • Purchasing energy from low carbon suppliers. This practice 500,000 CO CO (tonnes) (bars) 0.2 (line) produced amongst some signatories will support the market and encourage

(tonnes) per vehicle (tonnes) per vehicle the development of renewable energy, with the premise of 0 0 maintenance of cost competitiveness. 1999 2000 2001 2002 2003 • Becoming carbon neutral, through membership of schemes based on mitigation of carbon generation. 5.3.2 Combined Emissions of VOCs Signatories' Combined VOC Emissions

With the inclusion of a further manufacturer in the 2003 data the absolute amount of VOCs emitted increased (up 17.6 per cent) The amount per employee also increased. 8,000,000 5 The absolute increase is primarily due to increased output from 7,000,000 these signatories, as well as data from new signatories. 6,000,000 4 The slight reduction in VOC per vehicle (down 2.3 per cent) can 5,000,000 3 4,000,000 partially be explained by a change in model mix in some plants to 3,000,000 2 larger vehicles, or by the change in practice to increased painting 2,000,000 at assembly, as opposed to the component manufacture stage. 1

VOC (bars) (Kgs) 1,000,000

kg per vehicle(line) Over 50 per cent of signatories increased output of VOCs. 0 0

1999 2000 2001 2002 2003 PAGE 14 5. PRODUCTION AND DISTRIBUTION Processes Environmental Performance – Outputs Focus (6)

5.3.3 Combined Waste to Landfill Signatories' Combined Waste to Landfill Since 2001, both in absolute terms and per vehicle, the progress in this indicator has been dramatic. This continued in 2003. 140,000 70 Over 85 per cent of all signatories saw a reduction in waste to 120,000 60 landfill. Tonnes to landfill per vehicle was down 56 per cent. 100,000 50 In absolute terms we have seen reductions in waste to landfill 80,000 40 of up to 90 per cent from some signatories, overall down 20 per cent (without allowing for data from new signatories). 60,000 30 One signatory with an objective of zero tonnes to landfill was 40,000 Tonnes (bars) Tonnes 20 close to achieving this in 2003.

20,000 10 kg pervehicle (line) Another signatory reduced waste to landfill by over 13,000 0 0 tonnes alone. This is an outstanding achievement for this sector. 1999 2000 2001 2002 2003

5.3.4 Combined Recycling and Recovery

In line with the reduction in waste to landfill, recovery and recycling of packaging waste continues to improve. Packaging obligations for 2003 for most signatories changed. Some reductions in the amount of waste recovered have occurred, and we believe this is in line with a strong policy on waste minimisation combined with tougher UK obligations, and the greater use of re-usable packaging, which can be a key element to environmental sustainability. We have concerns about the consistent methods of reporting by signatories in this area and plan to revise terminology to differentiate between obligations (for packaging waste) and on site recycling in forthcoming reports. The trend for 2003 remains true compared to previous years. 6. Economic Performance (1) PAGE 15

6.1 Contribution to the UK Economy

STRATEGY COMMITMENT: to continue to seek economic growth and secure competitiveness in the global environment

Table 6.1 Contribution to UK Economy 1999 2000 2001 2002 2003

Value of UK Automotive Exports (WI) £19.1bn £19.8bn £18.0bn £20.8bn £21.5 bn Expenditure on Business R&D (WI) £1145m £929m £930m £960m £955m Sector share of total GDP at market price (WI) 0.80% 0.80% 0.90% 0.90% 0.90% 6.2 Production Indicators Table 6.2 Economic Indicators 1999 2000 2001 2002 2003

UK Automotive manufacturing sector turnover (WI) £44.2bn £42.5bn £42.2bn £43.1bn £43.5bn Signatories combined turnover (AS) £20.1bn £21.03bn £24.4bn £35.7bn £39.2bn Total UK number of new cars produced (AC) 1,786,623 1,641,317 1,492,146 1,629,744 1,657,558 Total UK number of new CVs produced 185,905 172,442 192,872 191,267 188,871 Total UK number of new vehicles produced 1,972,528 1,813,759 1,685,018 1,821,011 1,846,429

Total no. of new vehicles produced by signatories 1,572,642 1,470,659 1,441,794 1,731,894 Total number of new car registrations (AC) 2,197,615 2,221,647 2,458,769 2,563,631 2,579,050 Total number of new CV registrations 288,100 298,043 313,411 322,258 363,687 Total number of new vehicle registrations 2,485,715 2,519,690 2,772,180 2,885,889 2,942,737

Production of automotive units is increasing in the UK, supported by increased exports. Some brands have had notable sales success and expanded into new markets in 2003. The industry in the UK has found its place in the strategy of many global brands. This is due to the UK history in automotive manufacture, a strong skills base and a sound cost base. An important base of research, development and testing of automotive products remains here in the UK, supported by some of the global brands as well as domestic producers. There is no doubt the future will bring challenges, as markets and production in Eastern Europe grow and China becomes a major production centre, for domestic and export production. The need to meet the challenge of low cost production sources will remain a key issue for the coming years.

STRATEGY ACHIEVEMENT: notable successes in production expansion for vehicles and components, but developments in this global market stress the need to remain competitive PAGE 16

6. Economic Performance (2)

6.3 Investment Investment in capital plant and equipment and in Table 6.3 Investments 1999 2000 2001 2002 2003 research and development is key to the future success of the UK as an automotive centre in world production. Auto manufacturing sector net capital investment £2.13bn £2.08bn £2.23bn £2.17bn £2.16bn Net changes in investment by signatories, allowing for Inward direct investmentinto auto manufacturing £3.48bn £2.73bn (-£0.85bn) (-£0.23bn) £535m new signatories and those who have returned data for Expenditure on business research and development£1,14bn £0.93bn £0.93bn £0.96bn £0.95bn the first time in 2003, sees a decreased level of Signatories combined UK investments - £1.28bn £1.22bn £1.52bn £1.80bn investment than in 2002. This is not an absolute cause for concern as it reflects £0.91bn from new signatories, or those not previously new model and plant development patterns. submitting data It does illustrate the importance of retaining new model and component development in the UK, across all model types and sizes. 6.4 Employment

STRATEGY COMMITMENT: to continue to secure and enhance employment opportunities where appropriate

Table 6.4 Employment Indicators 1999 2000 2001 2002 2003 Number of jobs dependent on the sector 867,000 849,100 835,800 847,100 841,000 · Automotive manufacturing 260,000 251,600 237,300 229,400 220,000 · Automotive supply and use 607,000 597,500 598,500 617,700 621,000 Signatories total combined employees (AS) 95,214 100,036 96,357 89,455 87,625

Employment in the manufacturing element of the sector is falling. This is not a reflection of the overall decline of the sector, but a response to increase competitiveness to match the best manufacturing output in the world, something many UK based plants achieve. The industry faces the challenges of recruitment and of being seen as an employment opportunity for young people. Working in the industry though, for the vast majority of employees, is a rewarding and long term experience . The objective of achieving a vibrant, diversified workforce is being achieved. Efforts to bridge the skills gap are supported by the Automotive Academy, managed by SMMT. See www.automotiveacademy.co.uk

STRATEGY ACHIEVEMENT: signatories work hard to make the sector a sustainable place to work and to increase diversity and skills PAGE 17

6. Economic Performance (3) 6.5 Supply Chain Efficiency

STRATEGY COMMITMENT: to support Industry Forum and work to enhance supply chain efficiency

The number of signatories driving quality standards throughout the supply chain has increased from 11 to 13. This process has been key to quality improvement of the final product and ensuring consistent quality of component supply. This process is being undertaken by encouraging suppliers to work to ISO 9001 standards, and TS16949. The supply chain focus is being extended by assemblers to looking at the level of recycled content in components and the recyclability of those components. We are aware of the increasing internationalisation of component sourcing in the automotive sector. Quality standards, as well as environmental standards, are being employed by signatories in this process, not just in domestic supply lines. Further, UK owned component signatories are constructing and developing production sites overseas to respond to local and global demand. Standards of sustainability gained in the UK serve as a benchmark when undertaking this development.

6.5.1 Modal choice for shipment of materials and product

For the first time in 2003 we looked specifically at the modes of transport used by signatories in their operations.

Table 6.5 Transport Mode by Signatory Site goods in goods out road rail water road rail water

37 5 5 42 9 2

Road is the number one modal choice for moving supplies and finished products. The largest production volume site in the UK remains road-only connected. Where road is used, all signatories continue to improve logistical services. One signatory has increased the cube utilisation (efficiency of packaging product into trailers) of its fleet by eight per cent overall, and in Europe replaced 12 truck routes by greener modes. For other modes, in March 2003 a new railhead opened at Castle Bromwich. This will save 45 million truck movements at Castle Bromwich over 10 years and 25 million from a sister plant in Halewood. is rail connected and investigation of using this mode for distribution into Europe is being undertaken. The use of local short sea shipping is now having an impact, a new facility in Newcastle upon Tyne will save 900,000 truck miles. Other plants have direct rail connections and quay-sides owned or used by signatories. STRATEGY ACHIEVEMENT: signatories continue to drive quality through the supply chain and where practical continue to develop the use of alternative modes of transport, in their logistics networks PAGE 18 7. Social Performance (1)

STRATEGY COMMITMENT: continue to improve the skills, facilities and opportunities available for employees 7.1 Production and Distribution Processes 7.1.1 Employee Profiles Percentage of female employees 9.6 per cent

For the first time this year we asked signatories to report on the percentage of staff that were female. It comes as no surprise that the industry is very male dominated. The overall percentage of female employees was just under 10 per cent. This compares to a figure of just under 14 per cent for a national survey carried out in 1993. This data, though, represented a wider cross section of the automotive sector. The percentage of female employees ranges from as low as four per cent in a manufacturing operation to as high as 35 per cent in a retail and distribution signatory. This is significantly lower than the UK economy as a whole as female employees make up 45 per cent of the UK workforce (ONS), up from 41 per cent in 1984. This is the first year that we have asked signatories to provide details on their employee profile and we acknowledge that we need to do more work in this area. This will allow us to gain a better profile of the workforce in our sector.

7.1.2 Employee Development

In terms of employee support and development outside training and specific Health and Safety programmes, we received detailed information on three services being offered by signatories.

• Occupational health services – ensuring staff have support for injury and receive full awareness training on health risks.

• Confidential counselling – to help employees with personal issues.

• Stress management – recognising the extent to which stress impacts on quality of life.

Signatories realise the value of good employee management and ensuring the sector is a valued place of employment.

STRATEGY ACHIEVEMENT: difficult to quantify fully, but low staff turnover, flexible working policies, high levels of training, good health and safety and high quality of staff facilities all indicate some success 7. Social Performance (2) PAGE 19

Production and Distribution Processes Incidents - Work Related First Time Visits Motor Industry Data (more data than signatories) 7.1.3 Health and Safety Table 7.1.3 a Reported Lost Time Incidents - signatories only

2002 2003 change 500 450 669 710 6 % increase 400 350 Note: from signatories providing comparable data for 2002 and 2003 300 250 200 In a global context, the record of the United Kingdom in Health and Safety is good, as is 150 responding com pany demonstrated in the table (7.1.3b) form the International Labour Organisation for 100 manufacturing. Average num days per of ber 50 0 The rise in reportable (RIDDOR) incidents for signatories, (table 7.1.3a) in 2003 however, is disappointing. Years In the United Kingdom, the Motor Industry Safety Group, with representatives from 1998 1999 2000 2001 2002 2003 manufacturer’s, component suppliers, the Health and Safety Executive and SMMT, meets six times per year to co-ordinate the sector’s approach to Health and Safety in Table 7.1.3 b Manufacturing Industry Reported Fatalities the industry. Data from the group is shown in the graph. (This includes a great number 1999 2000 2001 2002 UK ND 47 48 43 of companies than the sustainability signatories.) For 2003 the group identified a number of developments taking place in the industry: Canada 189 209 192 227 Mexico 326 376 348 283 • A decrease in the number of reportable accidents (for the wider industry), but an United States 722 668 598 564 increase in the duration. • A change in the nature of reported incidents away from physical, evident injury to non- Japan 342 318 323 275 Korea 397 443 380 ND evident psychological events. • Continued and consistent training in health and safety. Austria26262432 France 179 163 ND ND • Improved data collection, information on ‘near misses’ is now collected by signatories. Germany 218 198 190 176 • A growing concern of the danger of forklifts and other transport equipment in Italy 273 256 282 ND manufacturing operations. Poland 117 161 138 112 Spain 209 198 188 136 • Design of the workplace and workplace equipment to improve ergonomic Sweden 13 5 8 8 performance, to address back and repetitive strain injuries. Source: International Labour Organisation The industry has a positive attitude towards Health and Safety and is looking towards ways of illustrating this in its management and reporting processes. ND = No Data PAGE 20

7. Social Performance (2) Production and Distribution Processes 7.1.4 Training Total number of training days (for reporting signatories) 241,549 Average number of training days per employee 3.8 Number of young people in apprenticeships (Automotive Sector) 17,054 (2002/2003)

Training within all companies is extensive and the approaches include:

• Becoming more sophisticated; major companies now offer internal training web sites, enabling employees to undertake web-based training packages. Signatories are setting up workspace and stations for employees to be able to take full advantage of web-based training while at work. • This concept is extended to on-site open learning centres, a location for employees to develop all aspects of training including language development, especially for those whose first language is not English. • As well as information technology based training, however traditional training is still in place. A number of signatories in 2003 have reported on the development of modern apprenticeship based schemes. There is recognition that this is necessary to secure a future skilled workforce. • Training is becoming more internationally focused. With many signatories involved in global operations, the opportunity to visit other company sites and see and understand practices and methods abroad is now commonplace. This is particularly prevalent in the set up of new production facilities where contact with international colleagues remains open long after development stages. This form of ‘on the job’ training is invaluable in ensuring UK industry remains in touch and competitive with international plants, to take full advantage and match their developments. • Although, as in many other industries, the traditional management structure has been replaced with a flatter, streamlined alternative, in many plants the team based approach is matched with leadership development skills. This is equally applied to retailing operations in car showrooms. • Signatories continue to support membership of professional organisations. • There is a recognition and development of training towards NVQs. • Development in training company car drivers on safe driving courses. The sector is looking to provide examples to other sectors to encourage them to train and develop those personnel for whom driving is part of their employment. • Links to Sector Skills Councils for the retail motor industry see www.automotive-skills.org.uk. • Development of the Automotive Academy www.automotiveacademy.co.uk PAGE 21 7. Social Performance (4) Production and Distribution Processes 7.1.5 Staff Turnover Less than 6.1 per cent overall

Staff turnover has fallen again compared to previous years. There is a variation in data from signatories, the highest having a staff turnover of over 12 per cent and the lowest less than three per cent. This data compares with a staff turnover figure of 32 per cent in call centres (Personnel Today), 25 per cent all sectors (Information Data Services) and 18 per cent in distribution and logistics (Freight Transport Association). The low level of staff turnover is a strong indicator of the overall stability and attractiveness as a place to work, re-enforcing the message that the United Kingdom continues to be an excellent location for the production of vehicles. 7.1.6 Employee Consultation and Welfare Number of Signatories with a staff suggestion scheme : 12 = 55 per cent Number of Signatories with a staff suggestion scheme (VMs): 9 = 75 per cent

The number of companies who have a ‘stand alone’ staff suggestion scheme is just over 55 per cent in the case of all signatories and 75 per cent in the case of those manufacturing vehicles. Interestingly, the Japanese owned companies do not favour rewarded staff suggestion schemes, instead they look to the Kaizen management technique of continuous improvement to satisfy the need for staff to develop ideas impacting in the workplace. One signatory quoted savings of over £10 million from their employee suggestion scheme, another saved £1.5 million. On employee welfare we asked signatories to respond to two specific areas this year. • flexible working policy • aims and objectives for employee support In April 2003, legislation was introduced to increase employees’ opportunity for flexible working and all signatories gave examples of how this had been integrated into their policy. In many cases they offer maternal and paternal leave, leave for carers and foster parents exceeding legal requirements. Some are actively encouraging the concept of career breaks for all employees and the extension of flexible working to allow staff to take time away from employment for a variety of reasons: • Creating and developing ‘work/life’ balance is now cited in some signatories’ policy; one of the many tools towards this objective is increasing the capability for tele-working and home-working. • The incorporation of employee families into the workplace is common with social events at work for all family members. • Support for longer term pay deals is increasing, with signatories signing longer term agreements with trade unions. PAGE 22 7. Social Performance (5) 7.2 Products and Relationships

STRATEGY COMMITMENT: continue to engage positively with external stakeholders

7.2.1 National Stakeholder Engagement The Environment Team at SMMT all have contact with stakeholder groups. This includes the Low Carbon Vehicle Partnership, the Cleaner Transport Forum, the Air Quality Forum, the UK Climate Impact Programme, local authorities, academic institutions and government departments. Signatories also engage with government and non-governmental organisations on a national and local level. 7.2.2 Community Involvement

As significant employers in their own right, all signatories embrace the local and extended community in some of the following ways:

• Companies are now giving employees the opportunity to work in the community on a regular scheduled basis paid by the company. One signatory cited 16 hours per annum an example. We expect this type of direct community involvement to develop with more signatories. • Local schools and colleges, are supported in a number of ways. For example some signatories offer support to colleges in vocational training schemes, many offer school visits; signatories gift, equipment and information technology to schools. They also provide information packs. • Data for schools to use in the education process. • Placement for teaching staff in plant and factory to enable them to obtain experience in industry. • Allowing schools the free use of sports facilities where the school does not have its own. • Plant tours for schools, colleges and interested groups. • The direct support of literacy and numeracy schemes for schools. • Support for the local disabled community, one signatory provides facilities for a local ‘powerchair football’ league. • Blood donation by employees. • Design foundation, to support new and innovative design for a huge range of products. • Supporting awards for engineering and the environment for younger and new talent. STRATEGY ACHIEVEMENT: further developing success in engaging with many stakeholders PAGE 23 8. Sector Issues (1)

8.1 Sustainable Mobility

In the Summer of 2003, the World Business Council for Sustainable Development (WBCSD) reported on the issue of sustainable mobility in the report Mobility 2030: meeting the challenges to sustainability (www.wcsd.org) The report, supported by automotive manufacturers, component suppliers and fuel suppliers takes a long term look at the issue of sustainable mobility, and we address the issues raised in this section. The global forecast is that between now and 2050 the demand for personal transport will more than double, with fastest rates of growth in developing regions, Eastern Europe, Russia, India and China. In OECD Europe, the projected growth in personal motorised vehicle ownership is forecast to increase by 40 per cent in the next 45 years. Demand for mobility by all modes, - road, rail and air - is growing.

8.2.1 Emissions, CO2 and Global Warming

Global warming, climate change and the relationship with CO2 are everyday news. Although all sectors, domestic, commercial and industrial contribute to global warming through CO2 generation, transport is the sector that currently shows greatest growth. Road transport is presently measured as a major contributor to transport generated emissions. Mobility 2030 suggests that in the developed world, through improvements in technology already in place, emissions from road transport will stabilise. This is not the forecast for the developing world, where per capita income rises will result in a sharp increase in demand for transport. Different scenarios exist between now and 2050 relative to carbon emissions and these are dependent on the introduction and, importantly, adoption of low carbon powertrains and ultimately the move to hydrogen power. The Foresight Vehicle Technology Roadmap further illustrates these developments see www.foresightvehicle.org.uk/technology_road_map.asp Research estimates that between 85 and 90 per cent of vehicle emissions are generated in the use phase. Therefore reducing CO2 emissions from the manufacturing product, and from the fuel used (potentially on a well to analysis, so including bio-fuels) will together reduce total CO2, the so-called integrated approach. The impact of mitigation measures mean that there is a need to consider plans for adaptation to climate change. SMMT, together with the United Kingdom Climate Impacts Programme, is working to support the automotive and engineering sector to become fully aware of the effects of climate change and the need to adapt. PAGE 24

8. Sector Issues (2) 8.0 Sustainable Mobility continued

8.2.2 Emissions and Air Quality

The European Union has an active programme to improve air quality, reducing emissions from road transport through the so-called Euro standards of regulation . This programme is ongoing. In 2005 there will be the introduction of the Euro IV emissions standards for new car types, and on all newly registered cars a year later. Presently discussions are taking place on Euro V with the EU Commission. Air quality, both NOx and particulates, will be further addressed. The use of particulate filters on diesel vehicles is being considered by this regulation. Manufacturers often adopt these new standards in advance of regulation, and the performance of the new car fleet is frequently better than present regulation. The longer term forecasts in Mobility 2030 are for new vehicle technology dramatically to reduce road-side emissions between now and 2015. Unfortunately, more stringent emissions regulation impacts energy efficiency. Engine power requirements on a like for like basis will marginally increase as a result of employing emissions control equipment. 8.3 Responsible Product Use With 85 to 90 per cent of emissions being generated during the use of the product, encouraging responsible use is vital in the future of sustainable mobility. In relation to questions put to signatories there are a range of activities highlighted to encourage responsible use of automotive transport by signature company employees. These include: • green travel plans • discounted travel card • training in the use of the product • advanced driving skills • minibus driving skills • car sharing SMMT is undertaking work to develop the concept of responsible motoring, as outlined in our guide Driving for the future, published in 2003. SMMT believes that in all aspects of sustainable mobility, driver education is critical to success. This is a theme which will develop during 2005 and will be reported on next year. PAGE 25 8. Sector Issues (3)

8.0 Sustainable Mobility continued 8.5 Noise Road noise is generated from three sources, engine, tyres and aerodynamics, and as the chart 8.5 shows, the proportion and total of 8.4 New Vehicle Technology these three varies according to speed. Therefore different technology will be required to address these issues according to vehicle speed. Table 8.4 New Vehicle Technology Alternate Fuelled Vehicles Road surface development as well as tyre development is reducing tyre 2000200120022003 noise. Petrol/Gas 94 971 2,473 3,185 Standards and regulations have been in place for noise since the 1970s, Petrol/Electric hybrid 263 719 339 1,079 and developments continue to address this issue further. Electric only 0 0 35 2 TOTAL AFV 357 1,690 2,847 4,266 Chart 8.5 Noise Levels, generation and speed Market share % 0.02 0.07 0.11 0.17

New vehicle technology can be perceived as representing a dramatic At 10 km/h At 50 km/h At 100 km/h At 150 km/h change in the size, shape and powertrains of everyday cars. In reality every new model incorporates significant improvements in environmental technology over its predecessor and this progress in terms of emissions and product energy efficiency is discussed in this report. Developments for the next two to three years include: • ‘stop-start’ technology, switching off the engine in stationary traffic • further development of petrol-electric hybrid models • development of diesel-electric hybrid models • the introduction of ‘smart’ gear shift change indicators for manual gearboxes • continual development to give better miles per gallon and reduce emissions Research in the UK is looking at developments for the future. The New Vehicle Technology Fund and SMMT managed Foresight Vehicle Programme support this work.

Engine Tyres Aerodynamics PAGE 26 8. Sector Issues (4) 8.0 Sustainable Mobility continued 8.6 Congestion The number of vehicles on UK roads is increasing, as too is the mileage being travelled by those vehicles, so, demand for road space overall will increase. There is the opportunity, though, to improve road space utilisation through: • Improved use of infrastructure; improving infrastructure design, managing travel patterns, increasing vehicle utilisation, introducing new technology to roads and vehicles and effective incident response. • Raising the profile of driver education. • Better spatial management; reducing the demand for road travel through the use of alternative modes, enhancing the planning and building process and fiscal strategies. SMMT is aiming to gain a greater understanding of these issues and how they impact congestion. A co-operative, co-ordinated, fiscally balanced strategy will help address this issue and develop methods of ensuring our increased desire for mobility in all transport modes is a sustainable one. SMMT plans to undertake work here. 8.7 Safety Car occupant and pedestrian safety is improving. The voluntary NCAP rating scheme has raised the profile of improved vehicle technology and road safety, and we are pleased to see the first five-star rating for a supermini in 2004. Manufacturers have developed voluntary agreements for the introduction of Anti-lock Braking Systems (ABS) during 2004 to enhance safety further. However, in 2003 road deaths rose by two per cent on 2002. This can be put down to a 14 per cent increase in deaths from motorcyclists and a one per cent increase in deaths from car drivers. The Royal Society for the Prevention of Accidents (ROSPA) suggests a six point plan to improve road safety: 1. Train motorcyclists to build experience on smaller machines before moving up to larger ones, particularly true of 30 to 40 year olds. 2. Lower the drink drive limit to 50mg, and undertake random breath tests. 3. Enhance ongoing motorist training. 4. Take action to reduce work-related driving deaths, including company car drivers. 5. Change clocks by one hour to provide lighter evenings in spring and autumn. 6. Promote higher police presence. PAGE 27 9.0 For Further Information on Signatories, and other contacts Table 9.0 Further Contacts Signatory Name Web site Organisation Web site Audi www.volkswa gen-environment.de Auto Industry www.autoindustry.co.uk Bentley Motors www.bentleymotors.com Automotive Academy www.automotiveacademy.co.uk BMW Group www. group.com Department for Food Ford Motor Com pany www.ford.com Environment and Rural Affairs GKN Driveline www. gknplc.com (DEFRA) www.defra.gov.uk/environment/sustainable Honda UK Manufacturin g www.mfg.honda.co.uk (DfT) www.dft.gov.uk Jaguar Cars www.jaguar.com Department of Trade and UK www.landrover.com Industry (DTI) www.dti.gov.uk/sustainability/ LDV www.ldv.com EC Sustainable Development www.europa.eu.int/comm/sustainable MG Rover Grou p www.mg-rover.com Energy Savings Trust www.transportenergy.org.uk www.nissan.co.uk and www.nissan- Nissan Environment Agency www.environment-agency.gov.uk global.com European Environment Agency www.eea.eu.int Perkins Engines www. perkins.com Foresight Vehicle Programme www.foresightvehicle.org.uk PSA Peugeot Citroën www.sustai nability.psa-peugeot- LowCVP www.lowcvp.org.uk Automobiles citroen.com Royal Society for the Prevention Powertrain Limited www. powertrainltd.com of Accidents www.rospa.org.uk Rolls-Royce Motor Cars www.rolls-ro ycemotorcars.com Sector Skills Council for the SEAT www.volkswa gen-environment.de Automotive Sector www.automotive-skills.org.uk Skoda Auto www.volkswa gen-environment.de SMMT www.smmt.co.uk Toyota www.toyota.co.uk and www.toyota.co.jp Sustainable Development Vauxhall Motors www.vauxhall.co.uk www.sd-research.org.uk Volvo Car UK www.volvocars.co.uk Research Network The Carbon Trust www.thecarbontrust.co.uk Volkswagen Group www.volkswa gen-environment.de Volkswagen Commercial The Sustainable Development www.volksw agen-environment.de www.sd-commission.org.uk Vehicles Commission The World Business Council for Look for links to 'about us' or 'company' to be directed to sustainability and Sustainable Development environmental information. (WBCSD) www.wbcsd.org UK Climate Change Impact Published by: The Society of Motor Manufacturers and Traders Ltd., Programme www.ukcip.org.uk November 2004, SMMT and the SMMT Logo are registered trademarks of UK Commission for Integrated SMMT Ltd. © All rights reserved. Transport www.cfit.gov.uk www.sustainable-development.gov.uk Printed on Revive made from 100 per cent waste paper. No chlorine or UK GOV SITE chlorine compounds are used in the paper's production. The paper is also free UN Division for Sustainable www.un.org/esa/sustdev of OBAs (Optical Brightening Agents) Development United Kingdom Petroleum Images from shutterpoint.com Industries Association (UKPIA) www.ukpia.com Vehicle Certification Agency (VCA) www.vca.gov.uk PAGE 28

The Society of Motor Manufacturers and Traders Limited Forbes House Halkin Street LONDON SW1X 7DS United Kingdom ® Telephone: +44 (0)20 7344 9200 Fax: +44 (0)20 7973 0529 E-mail: [email protected] Web: www.smmt.co.uk/sustainability